Sino Agro Food Inc (fka SIAF)

[aquaculture]

The company has not permanently decided to increase it's share count due to collateral and all share owners rely on collateral being returned. If the lender refuses to return the collateral, the company must buy them back from the market and sue the lender for the losses. In such way it's not the share price at a certain date which determines the penalty, but the actual loss from real buybacks IMO. The buybacks which the company did on behalf of the lender.

Long before that date, we shall have news about financing and maybe other positive news, like sale of non-core to free up some of our $800 mill assets. They can not continue to lend pocket change from month to month. A company with a $300-400 mill revenue and 3-6 month creditline to customers, should have around $100 mill in cash at all time.

Therefore, the share price at maturity is the best way to determine punitive damages